2016
DOI: 10.1177/0973801016659729
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Juridical and Functional Informality: From Theory to Practical Policy

Abstract: The purpose of this article is to deepen the understanding of informality, and related efforts governments must take to cope with large and persistent informal sectors. Is the informal sector a source of growth and employment or a drain on the fiscus that undermines social safety nets? This article questions the ‘formal sector bias’ present in much of the policy discussions surrounding informality. A theoretically grounded distinction between ‘functional’ and ‘juridical’ informality is drawn and applied to sub… Show more

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Cited by 4 publications
(4 citation statements)
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“…Sektor informal memiliki beragam karakteristik, antara lain tidak membayar pajak, persisten (Gibson & Flaherty, 2016), fleksibel (Soebyakto & Armansyah, 2016;Armansyah & Aryaningrum, 2017), adaptif (Pitoyo, 1999), pendidikan dan keterampilan rendah (Ramdan, 2012;Armansyah & Taufik, 2018), serta miskin (Chen & Vanek, 2013). Sektor informal menjadi strategi bertahan hidup yang populer bagi pencari kerja yang belum bisa beradaptasi dengan globalisasi, gagal memasuki lapangan kerja formal, kalah bersaing atau terkena PHK (Canclini, 2018).…”
Section: Pendahuluanunclassified
“…Sektor informal memiliki beragam karakteristik, antara lain tidak membayar pajak, persisten (Gibson & Flaherty, 2016), fleksibel (Soebyakto & Armansyah, 2016;Armansyah & Aryaningrum, 2017), adaptif (Pitoyo, 1999), pendidikan dan keterampilan rendah (Ramdan, 2012;Armansyah & Taufik, 2018), serta miskin (Chen & Vanek, 2013). Sektor informal menjadi strategi bertahan hidup yang populer bagi pencari kerja yang belum bisa beradaptasi dengan globalisasi, gagal memasuki lapangan kerja formal, kalah bersaing atau terkena PHK (Canclini, 2018).…”
Section: Pendahuluanunclassified
“…Access to financial services is one of the crucial determinants of the growth and performance of any enterprise (Blattman, Green, Jamison, Lehmann & Annan, 2016). Small businesses face capital constraints (Gibson & Flaherty, 2016). A review of the literature shows that informal enterprises rarely obtain any credit from formal financial institutions (FFIs) (Farazi, 2014).…”
Section: Financial Access Of the Informal Enterprisesmentioning
confidence: 99%
“…On a national level, recent Argentinian public statistics 1 adopted reduced measurement, such as the number of unregistered jobs (Bertranou and Casanova, 2014). 2 Although this empirical measurement is directly observable, it refers to “juridical” rather than “functional” informality, the former being defined largely as a matter of choice and the latter, as being related to labor market dynamics (Gibson and Flaherty, 2016). Extending the usual statistical approach, Beccaria and Groisman (2008) desegregate and measure different positions of informality in employment.…”
Section: Informality’s Landscape: Concept Political Debate and Socimentioning
confidence: 99%
“…In various national contexts, the absence or flexibility of status, contracts, job duration, working hours, and social security can also serve as new resources and opportunities in a context of greater mobility (Longo et al, 2014; Vultur, 2010). Indeed, some workers “may prefer the flexibility, hours or absence of surveillance and intrusion that the informal sector sometimes offers” (Gibson and Flaherty, 2016: 437). In their study on Argentina, Brazil, and Mexico, Bosch and Maloney (2007) point out that the informal sector seems to be a stepping-stone between the functional and formal sectors in the labor market, to use Gibson and Flaherty’s terms (2016).…”
Section: Informality’s Landscape: Concept Political Debate and Socimentioning
confidence: 99%